Principles of Management

Unit 1
1. In management, we have planning-action-__ cycle.
Deciding
Function
Control
Manage

2.Modern Managers are

Action required
Able to build a sense of shared values
Able to manage changes efficiently
All of the above

3.Which of the following is not a principle of management given by Taylor

Functional Foremanship
Science, not rule of the thumb
Maximum, not restricted output
Harmony, not discord

4. How are principles of management formed?

In a laboratory
By experience of managers
By experience of customers
By experience of produce

5. The observation of people at work that would reveal the one best way to do a task is known
as
Scientific management
Creative management
Human Resource management
Classical management

6.The first management principles were developed by

Victor Meldrew
Charles
Henry Fayol
Taylor

7. Studying the future and arranging the means for dealing with its part of the process of
Organizing
Controlling
Coordinating
Planning

8. The founder of Scientific Management was

Peter F Drucker
Fredrick Taylor
Hendry Fayol
Elton

9. Division of work, authority and responsibility unity of command were proposed as part of
the fourteen principles of management by
Fayol
Meldrew
Taylor
Charles

10. Management should find one best way to perform a task Which technique of Scientific
management is defined in this sentence
Time study
Motion study
Fatigue study
Method study

11. Henry Fayol was a

Social scientist
Accountant
Production engineer
Mining engineer

12. The principles of management are significant because of

Changing technology
Utilization of resources
Increase in efficiency
Initiative

13. Which of the following is not true

Management is universal
Management is Art
Management is a social process
Management is always bureaucratic

14. Which of the following is not the functional areas of management

Production management
Marketing management
Personnel management
Information management

15. A reporting relationship in which an employee receives order form and reports to only one
supervisor is known as
Unity of direction
Unity of command
Centralization
Planning

16. Observe the following management principles and pick the odd one out .Justify your
answer
Maximum output
Equity
Unity of command
Unity of direction

17. Which of the following is not a function of management

Staffing
Planning
Controlling
Cooperation

18. Principles of management are not

Absolute
Flexible
Behavioural
Universal

19. With the wider span there will be hierarchical levels

More
Less

20. Management is what a-----does

Manager
Subordinate
Supervisor
Superior

21. Scientific management is developed by

Fayol
Taylor
Mayo
Jacob

22. Management is an
Art
Science
Art and Science
Art or Science

23. Dividing the work in to small tasks is known as

Discipline
Unity
Division of work
Equity

24is part and parcel of our day to day life

Management
Economics
Commerce
Industry

25helps to finish to task on time

Planning
Team spirit
Motivation
Remunerations

26. Management is a------and Universal concept.

Mathematical
Processing
Global
Economical

27. Which of the following is not a Management Tool?

Business Law
Econometrics
Statistics
Measuring

28. Management is an ongoing process of allocating------of an organization.

Input
Output
Employees
Income

29. Quantitative school wants to improve the quality of--------.

Planning
Organizing
Decision Making
Functioning

29approach emphasizes dynamic nature of management process in an ever changing

business environment.
Contingency
Positive
Negative
Systems

30approach concentrates on the entire organization.

Contingency
Positive
Negative
Systems

31. Which principle of general management advocates that, “Employee turnover should be
minimised to maintain organisational efficiency.”?
(a) Stability of personnel
(b) Remuneration of employees
(c) Equity
(d) Esprit De Corps

32. According to P. Drucker, the manager has to balance and integrate_______major jobs of a
business enterprise.
2
3
4
5

33. The art of management is fully reflected in the_______capacity of a manager.

Decision making
Planning
Organizing
Managing

34. Judgment and Imagination are essential even in a______economy.

Civilized
Developing
Computerized
Classic

35. In order to increase organizational efficiency, the______method should be substituted.

Rule of Thumb
Harmony, not discord
Mental Revolution
Individualism

36______with mutual-trust and understanding should be a tool to focus on the work.

Planning
Deciding
Group action
Discussing

37. To attain the efficiency, steps should be taken right from the process of_______of
employees.
Selection
Managing
Transferring
Guidance

38. Social order ensures the fluid operation of a company through_______procedure.

Managerial
Authoritative
Cyclical
Optional

39. Managers should be fair and_____when dealing with employees.

Partial
Social
Impartial
Jovial

40. Scalar Chain principle suggests that there should be a __ line of authority from top to
bottom linking all managers at all levels.
Straight
Clear
Partial
Vertical

41order ensures safety and efficiency in the workplace.

Social
Market
Material
Management

42refers to the need of managers to ensure and develop morale in the workplace.
Motivation
Wants
Team Spirit
Initiative

43should be acceptable and under the rules of the company.

Management
Administration
Order
All of the above

44, mutual confidence, sense of goodwill should prevail among both, managers as well as
workers.
Understanding
Responsibility
Productivity
Cooperation

45. Which school sees management as a process of planning, organizing, directing and
controlling?
Functional
Behavioral
Quantitative
Systems

46. Management is essential for the organisations which are

(a) Non-profit organisations
(b) Service organisations
(c) Social organisations
(d) All of the above

47. People in the organisations carry out diverse tasks with the aim to achieve
a) Different objectives
(b) Common objectives
(c) Both of the above
(d) None of the above
48. Efficiency is concerned with
(a) Doing the right thing
(b) Doing things right
(c) Achieving end results
(d) None of the above

49. Effectiveness relates to

(a) Doing the right task
(b) Completing activities
(c) Achieving goals
(d) All of the above

50. Management is said to be poor if it is

(a) Efficient but ineffective
(b) Effective but inefficient
(c) Both inefficient and ineffective
(d) All of the above

51. Which of the following statements is not true for lower level management?
(a) Analyse the business environment and its implications for the survival of the business.
(b) Ensure the quality of the output
(c) They strive to reduce the wastage of resources
(d) They ensure that the safety standards are maintained within the organisation.

52. This level of management serves as a link between top level managers and first line
managers.
(a) Supervisory level management
(b) Operational management
(c) Middle level management
(d) None of the above

53. It is a force that binds all the functions Of management.

(a) Cooperation
(b) Co-ordination
(c) Planning
(d) Management hierarchy

54. By profession, FW Taylor was a

(a) Mechanical engineer
(b) Mining engineer
(c) Psychologist
(d) Human resource officer

55. Which of the following statements best defines the techniques of management?
(a) It is a set of guidelines to take decisions and actions.
(b) It is a procedure which involves a series of steps to be taken.
(c) They are general rules for behaviour of individuals.
(d) None of the above.
56. ‘Rule of thumb’ refers to
(a) Use of personal judgement in handling management issues
(b) Adopting a hit-and-trial approach to resolve management problems
(c) Both of the above
(d) None of the above

57. According to Taylor, “even a small production activity like loading figures of iron into boxes
can be scientifically planned and managed. This can result in tremendous savings of human
energy as well as wastage of time and materials.” Identify the related principle of scientific
management.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to get his/her greatest efficiency and prosperity
(d) None of the above

58. According to this principle of scientific management, “Scientific management has for its
foundation the firm conviction that true interest of the management and workers are one and the
same; the prosperity for the employer cannot exist for a long time unless it is accompanied by
prosperity for the employees and vice versa.”
(a) Science, not rule of thumb
(b) Co-operation, not individualism
(c) Harmony, not discord
(d) All of the above

59. According to Henri Fayol, if this principle of general management is violated, “authority
is undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify
the principle.
(a) Authority and responsibility
(b) Discipline
(c) Unity of command
(d) Equity

60. Through this principle of management, Henri Fayol guides the managers to exhibit
exemplary behaviour and advises that they should not fall into temptation of misusing their
powers for personal benefit at the cost of general interest of the organisation. Which principle of
management is being described in the above statement?
(a) Remuneration of employees
(b) Centralisation and decentralisation
(c) Subordination of individual interest to general interest
(d) Equity
 Principles of management- Unit-II Planning

Planning
1. Which of the following is a feature of planning:-
(a) Focuses on achieving goals
(b) Pervasive
(c) Mental exercise
(d) All of the above
2. By comparing with standards manager can know whether the goals are
achieved or not:-
(a) Risk
(b) Ideas
(c) Actual performance
(d) Costs
3. Planning provides direction is a
(a) Importance of planning
(b) Limitation of planning
(c) Characteristics of planning
(d) Method
4. guides for decision making :-
(a) Rule
(b) Policy
(c) Procedure
(d) Method
5. type of plan is not likely to be repeated in future:-
(a) Standing plan
(b) Programme
(c) Single use plan
(d) Method
6. Advertising of a product is a part of
(a) Strategy
(b) Rule
(c) Budget
(d) Method
7. The sub ordinates are given complete freedom in taking decisions is a part of
(a) Rule
(b) Stratergy
(c) Policy
(d) Procedure
8. are detailed statements about a project which outlines the objectives,
rules, etc.
(a) Budget

Page 1
 (b) Programme
(c) Single use plan
(d) Policy
9. forecasts the sales of different products in each area for particular
month:-
(a) Sales budget
(b) Sales accounts
(c) Sales cost
(d) None of the above
10. Name the function of management which involves setting objectives and developing
appropriate courses of action to achieve these objectives.
(a) Directing
(b) Organising
(c) Planning
(d) Staffing
11. Which of the following is not a benefit of planning?
(a) Planning reduces overlapping and wasteful activities.
(b) Planning is a mental exercise.
(c) Planning provides directions.
(d) Planning reduces the risks of uncertainty.
12. Which of the following is a benefit of planning?
(a) Helps in avoiding confusion and misunderstanding.
(b) Ensures clarity in thought and action.
(c) Useless and redundant activities are minimised or eliminated.
(d) All of the above.
13. Which of the following statements is not true with reference to planning?
(a) Planning is a pre-requisite for controlling.
(b) Planning does not lead to rigidity.
(c) Planning enables a manager to look ahead and anticipate changes.
(d) Planning facilitates co-ordination among departments and individuals in the
organisation.
14. What is known as the primary function of management?
(a) Controlling
(b) Organising
(c) Planning
(d) Staffing
15. Which of the following is not a feature of planning?
(a) Planning is futuristic.
(b) Planning is pervasive.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.
16. All other managerial functions are performed within the framework of the
plans drawn. Identify the related feature of planning.
(a) Planning focuses on achieving objectives.
(b) Planning is pervasive.
(c) Planning is futuristic.
(d) Planning is primary function of management.
17. Planning requires logical and systematic thinking rather than guess work or wishful
thinking. Identify the related feature of planning.
(a) Planning is futuristic.
(b) Planning is a mental exercise.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.
18. Planning cannot foresee everything, and thus, there may be obstacles to
effective planning. Identify the related limitation of planning.
(a) Planning leads to rigidity.
(b) Planning may not work in a dynamic environment.
(c) Planning does not guarantee success.
(d) Planning reduces creativity.
19. It is not always true that just because a plan has worked before it will work
again. Identify the related limitation of planning.
(a) Planning leads to rigidity.
(b) Planning reduces creativity.
(c) Planning may not work in a dynamic environment.
(d) Planning does not guarantee success.
20. Identify the correct sequence of steps involved in the planning process.
(a) Evaluating alternative courses, Identifying alternative course of actions,
Setting objectives, Developing premises
(b) Setting objectives, Identifying alternative course of actions, Evaluating
alternative courses, Developing premises
(c) Setting objectives, Developing premises, Identifying alternative course of actions,
Evaluating alternative courses
(d) Setting objectives, Developing premises, Identifying alternative course of actions,
Evaluating alternative courses
21. They represent the end point of planning.
(a) Rules
(b) Methods
(c) Objectives
(d) Policies
22. A strategy is derived from
(a) Policy
(b) Objective
(c) Method
(d) Rule
23. A strategy is a comprehensive plan which will not include this dimension
(a) Determining long term objectives
(b) Adopting a particular course of action
(c) The ends which the management seeks to achieve by its operations
(d) Allocating resources necessary to achieve the objective
24. They provide a basis for interpreting strategy, which is usually stated in general terms.
(a) Policies
(b) Procedures
(c) Objectives
(d) Programmes
25. They detail the exact manner in which any work is to be performed.
(a) Rules
(b) Methods
(c) Procedures
(d) Programmes
26. It helps to save time, money and effort, and increases efficiency.
(a) Procedure
(b) Programme
(c) Rule
(d) Method
27. It is a plan which quantifies future facts and figures.
(a) Procedure
(b) Programme
(c) Rule
(d) Budget
28. Which of the following is not a standing plan?
(a) Policy
(b) Procedure
(c) Programme
(d) Rule
29. Which of the following is not a single use plan?
(a) Budget
(b) Programme
(c) Method
(d) All of the above
30. Micromax was India’s largest seller of mobile handsets. It launched low-cost Chinese
manufacturing with some smart packaging and features like long-lasting batteries and
dual-sim functionality to garner 20% market share in India’s value-conscious mobile
handset market. Identify the two types of plans being described in the above lines.
(a) Strategy and objective
(b) Rule and Programme
(c) Programme and objective
(d) Method and objective
31. According to a survey, these days the young children have more power in
purchasing decisions than ever before. The parents seek their kids’ opinions about all
kinds of once-adult decisions, including where to go for dinner, what kind of car to
buy, even what to wear,”. Therefore, the retailers are adapting to this by enhancing
their kids’ sections. If the children want to shop in the store for their clothes, then
there’s a greater chance the parent will also see something they want to buy as well.
Identify the type of plan being described in the above lines.
(a) Programme
b) Method
(c) Strategy
(d) Rule
32. According to a survey of 250 consumer packaged goods (CPG) companies by
a reputed
firm, 75% of brand owners say they’re going to spend significantly more on
 packaging as it is critical to their brand’s success.
Identify the type of plan being described in the above lines.
(a) Rule
(b) Programme
(c) Strategy
(d) Method
33. According to the World Health Organization, 39% of adults are overweight.
Consequently in the U.K., a sugar tax was introduced in 2018 on beverages
containing more than 5% sugar to curb sugar intake. Identify the type of plan being
described in the above lines.
(a) Programme
(b) Method
(c) Strategy
(d) Rule
34. According to the Economic Survey, insights from behavioural economics can be
strategically utilised to create an aspirational agenda for social change – from BBBP
(Beti Bachao Beti Padhao) to BADLAVL (Beti Aapki Dhan Lakshmi Aur Vijay
Lakshmi); from Swachh Bharat to Sundar Bharat; from ‘Give It Up’ for the LPG
subsidy to ‘Think about the Subsidy’ and from tax evasion to tax compliance. Identify
the type of plan being described in the above lines.
(a) Programme
(b) Method
(c) Strategy
(d) Rule
35. Shubham wants to increase the sale of his business by 15% in the next
quarter. Identify the type of plan being described in the above lines.
(a) Method
(b) Objective
(c) Strategy
(d) Programme
36. Packaging is said to have the unique capacity to make products stand out in a
crowded marketplace. Therefore, convenience of the consumer is at the top of mind
of the
marketers as they are focussing on developing packaging that’s easier to open, to
protect against breakage, maintain freshness during delivery and keep a consistent
look and feel across multiple channels. Identify the type of plan being described in
the above lines.
(a) Programme
(b) Method
(c) Strategy
(d) Rule
37. Based on National Common Mobility Card standards, India’s first indigenously
developed inter-operable transport card was launched in March 2019 to make
travel across various modes convenient. Identify the type of plan being described in
the above lines.
(a) Strategy
(b) Programme
(c) Method
 (d) Rule
38. India is world’s third largest domestic aviation market. The government plans to make
India a hub for financing aircraft purchases and leasing of planes. In order to promote
this, the government has announced tax incentives, like tax deductions, for companies
setting up business in IFSC for fifteen years. Identify the type of plan being described
in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Rule
39. The government has been doubling down on its efforts to switch to 100% electric
vehicles by 2030. Many companies such as Tata Motors, Kinetic Motors, Maruti
Suzuki and Hyundai Motors are all readying their EV models for a 2020 launch in
order to support the plan. Identify the type of plan being described in the above
lines.
(a) Method
(b) Strategy
(c) Programme
(d) Objective
40. In order to encourage technologies like artificial intelligence (AI), the internet of
things (iot) and virtual reality (VR), the government is planning to launch a scheme
to invite foreign companies through a transparent bidding process, to set up plants for
manufacturing semi-conductors, solar photo voltaic cells, lithium cell batteries, solar
electric charging vehicles, computer servers, and laptops in India.
Identify the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Objective
41. Ketan Enterprises adopts different ways to provide training to employees, like Job .
Rotation, Coaching, Vestibule Training, Conference, Lecture Method and Role
Playing. Identify the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Procedure
42. Swatch Ltd. plans to earn a 20% return on its investment in a new project. Identify
the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Objective
43. . Deepak is striving to earn a profit of 30% in the current financial year. Identify
the type of plan being described in the above lines.
(a) Method
(b) Objective
(c) Strategy
(d) Programme
44. Name the type of budget which is prepared to determine the net cash position.
(a) Purchase budget
(b) Sales budget
(c) Cash budget
(d) Production budget
45. In 2019 alone, Swiggy has launched operations in 300 towns and cities. Swiggy
follows a two-step sequence while expanding to a small town. First, it provides more
laborious training to restaurants and delivery partners compared to their counterparts
in the city. Second, it focuses on building scale in operations and increase the
restaurant’s reach to a larger base of consumers, including optimizing kitchens,
resource planning among others. Identify the type of plan being described in the
above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Procedure
 UNIT 3
1. An identified group of people contributing their efforts towards the attainment of goals
is called an
a) organization.
b) business.
c) management.
d) department.
Ans : a
2. Name the process which co-ordinates human efforts, assembles resources and
integrates both into a unified whole to be utilised for achieving specified objectives,
(a) Management
(b) Planning
(c) Organising
(d) Directing
Ans: c
3. Organising is a process by which the manager
(a) Establishes order out of chaos
(b) Removes conflict among people over work or responsibility sharing
(c) Creates an environment suitable for teamwork
(d) All of the above
Ans: d
4. It is defined as the framework within which managerial and operating tasks are
performed.
(a) Span of management
(b) Organisational structure
(c) Informal organisation
(d) None of the above
Ans: b
5. It refers to the number of subordinates that can be effectively managed by a superior,
(a) Organisational structure
(b) Informal organisation
(c) Span of management
(d) None of the above
Ans: c
6. As the span of management increases in an organisation, the number of levels
of management in the organisation
(a) Increases
(b) Decreases
(c) Remains unaffected
(d) None of the above
Ans: b

7. Uranus Limited is a company dealing in metal products. The work is mainly divided into
functions including production, purchase, marketing, accounts and personnel. Identify
 the type of organisational structure followed by the organisation.
(a) Functional structure
(b) Relational structure
(c) Divisional structure
(d) None of the above
Ans: a
8. Identify the type of organisational structure which facilitates occupational specialisation,
(a) Functional structure
(b) Horizontal structure
(c) Network structure
(d) Divisional structure
Ans: a
9. Identify the type of organisational structure which makes training of employees easier,
as the focus is only on a limited range of skills.
(a) Network structure
(b) Divisional structure
(c) Functional structure
(d) Matrix structure
Ans: c
10. This type of organisational structure is most suitable when the size of the organisation is
large, has diversified activities and operations require a high degree of specialisation,
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure
Ans: b
11. Under this type of organisational structure, manpower is grouped on the basis of
different products manufactured.
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure
Ans: a
12. Which of the following is not a feature of functional structure?
(a) It promotes functional specialisation.
(b) Managerial development is difficult.
(c) It is easy to fix responsiblity for performance.
(d) It is an economical structure to maintain.
Ans: c
13. Which of the following is not a merit of functional structure?
(a) It promotes control and co-ordination within a department.
(b) It makes training of employees easier, as the focus is only on a limited range of skills.
(c) It ensures that different products get due attention.
(d) It leads to occupational specialisation.
Ans : c
 14. Which of the following is not a merit of divisional structure?
(a) It promotes product specialisation.
(b) It ensures that different functions get due attention.
(c) It promotes flexibility and faster decision making.
(d) It facilitates expansion and growth as new divisions.
Ans : b
15. Identify the correct sequence of steps to be followed in an organising process.
(a) Departmentalisation, Establishing reporting relationships, Assignment of duties,
Identification and division of work
(b) Identification and division of work, Departmentalisation, Assignment of duties,
Establishing reporting relationships
(c) Identification and division of work, Assignment of duties, Departmentalisation,
Establishing reporting relationships
(d) Identification and division of work, Establishing reporting relationships,
Departmentalisation, Assignment of duties
Ans : b
16. Which of the following is not a feature of formal organisation?
(a) It specifies the relationships among various job positions.
(b) The standards of behaviour of employees are evolved from group norms.
(c) It is deliberately designed by the top management.
(d) It places less emphasis on interpersonal relationships among the employees.
Ans : b
17. Which of the following is not a merit of informal organisation?
(a) It leads to faster spread of information and speedy feedback.
(b) It helps to fulfill the social needs of the members.
(c) It .does not fulfill inadequacies in the formal organisation.
(d) All of the above
Ans : c
18. Which of the following is not an element of delegation?
(a) Responsibilty
(b) Authority
(c) Accountability
(d) Decentralisation
Ans : d
19. It arises from the established scalar chain which links the various job positions and
levels of an organisation.
(a) Authority
(b) Responsibility
(c) All of the above
(d) None of the above
Ans : a

20. Rules, duties and responsibilities or workers are given in writing in .

a) formal organization.
b) informal organization.
c) business or organisation.
d) strategic organization.
Ans : a
21. Which arises from mans quest for social satisfaction?
a) formal organization.
b) informal organization.
c) business or organisation.
d) strategic organization.
Ans : b
22. It is the obligation of a subordinate to properly perform the assigned duty.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Ans : a
23. The responsibility flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above
Ans : c
24. Authority granted to an employee should be
(a) More than the responsibility entrusted to him
(b) Less than the responsibility entrusted to him
(c) Equal to the responsibility entrusted to him
(d) All of the above
Ans : c
25. It helps the managers to ensure that their subordinate discharges his duties properly.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Ans : c
26. The accountability flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above
Ans : c
27. Which of the following can be delegated?
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Ans : b
28. Authority arises from
(a) Responsibility
(b)Formal position
(c) Accountability
(d) All of the above
Ans : a
29. Responsibility is derived from
(a) Authority
(b)Formal position
(c) Accountability
(d) All of the above
Ans : a
30. Accountability is derived from
(a) Authority
(b) Formal position
(c) Responsibility
(d) All of the above
Ans : c
31. When decision-making authority is retained organisation is said to be by higher
management levels, an
(a) Decentralised
(b) Centralised
(c) Fragmented
(d) None of the above
Ans:b
32. Selection is in its application as much as it seeks to eliminate as many
unqualified applications as possible in order to identify the right candidates.
a) Both negative and positive
b) Positive
c) Negative
d) None of the above
Ans : c
33. Rearrange the following steps involved in the selection process.

i. External environment
ii. Internal environment
iii. Preliminary interview
iv. Selection test
v. Employment interview
vi. Reference and background analysis
vii. Selection decision
viii. Physical examination
ix. Job offer
x. Employment contract
xi. Evaluation
 a. xi, x, ix, viii, vii, vi, v, iv, iii, ii, i
b. i, ii, iii, iv, v, vi, vii, viii, ix, x, xi
c. v, i, xi, ii, iv, ix, iii, vi, viii, x, ix, vii
d. i, iii, iv, v, vii, ix, xi, ii, vi, viii, x
ANSWER: c. v, i, xi, ii, iv, ix, iii, vi, viii, x, ix, vii
34. In , the interviewer uses pre-set standardised questions which are put
to all applicants.

a. Unstructured interview
b. Structured interview
c. Behavioural interview
d. Mixed interview
ANSWER: b. Structured interview
35. occurs when an interviewer judges an applicant's entire potential for job
performance on the basis of a single trait, such as how the applicant dresses or
talks.
a. Stress producing
b. Halo - effect
c. Unstructured
d. None of the above
ANSWER: b. Halo - effect
36. Which of the selection steps is the most critical?
a. Physical examination
b. Selection decision
c. Reference and background checks
d. Employment interviews
Ans: b. Selection decision
37. is a systematic and planned introduction of employees to their jobs,
their co-workers and the organisation.
a. Job evaluation
b. Investiture orientation
c. Orientation
d. Placement
ANSWER: c. Orientation
38. Which of the below options are the topics covered in employee orientation
programme?

a. Training and education benefit

b. To em ployee counsellor
c. Relationship to other jobs
d. Disciplinary regulations
e. All of the above
ANSWER: e. All of the above
39. refers to the allocation of people to jobs; it includes initial assignment of
new employees, and promotion, transfer, or demotion of present employees.
 a. Recruitment
b. Placement
c. Selection
d. None of the above
ANSWER: b. Placement
40. How does training and development offer competitive advantage to
an organisation?

a. Removing performance defic iencies

b. Deficiency is caused by a lack of ability
c. Individuals have the aptitude and motivation to learn
d. None of the above
Ans:a. Removing performance deficiencies
41. Which of the following is a benefit of employee training?

a. Improves morale
b. Helps people identify with organisa tional goals
c. Provides a good climate for learning, growth and co - ordination
d. None of the above
ANSWER: b. Helps people identify with organisational goals
42. is an objective assessment of an individual's performance against well-
defined benchmarks.

a. Performance Appraisal
b. HR Planning
c. Information for goal identification
d. None of the above
ANSWER: a. Performance Appraisal
43. Which of these is the main purpose of employee assessment?

a. Making correct decisions

b. To effect promotions based on competence and performance
c. Establish job expectations
d. None of the above
ANSWER: b. To effect promotions based on competence and performance
44. How performance appraisal can contribute to a firm's competitive advantage?

a. Ensures legal compliances

b. Minimising job dissatisfaction and turnover
c. Improves performance
d. All of the above
ANSWER: d. All of the above
45. Which method is used for evaluating the performance of executives or
supervisory positions?
a) Psychological Appraisals
b. Assessment Centres
 c. Behaviourally Anchored Rating Scales
d. 360 degree feedback
Ans : b

46. What does the 360 degree feedback assess?

a. Communication Skills
b. Behavioural Aspect
c. Team – building skills
d. Soft skills
Ans : d
47. Which of these options are the activities that constitute the core of
performance management?
a. Performance interview
b. Archiving performance data
c. Use of appraisal data
d. All of the
above Ans: d
48. Which is the biggest challenge faced while conducting performance appraisal?
a. Evaluating performance of self – managed teams
b. Presence of a formal appeal process
c. Appraisals based on traits are to be avoided
d. None of the
above Ans: a
49. When designing an actual appraisal method, the two basic considerations are
a) who should measure and when to measure
b) when to measure and what to measure
c) what to measure and who should measure
d) what to measure and how to measure
Ans: d
50. Which performance appraisal technique lists traits and a range of performance values for each
trait?
a) behaviourally anchored rating scale
b) graphic rating scale
c) forced distribution
d) critical incident Ans: b
 Principles of management- Unit-IV Directing

Directing
1. Which of the following is not a characteristic of directing?
(a) Directing initiate action
(b) It is a continuous process
(c) Flows from top to bottom
(d) Ensuring order & discipline

2. Which of the following is the elements of directing?

(a) Supervision
(b) Motivation
(c) Leadership
(d) All of the above

3. is the process of guiding the efforts of employees to accomplish the

desired goal.
(a) Supervision
(b) Directing
(c) Controlling
(d) Motivating

4. Which of the following is not a non-financial incentive?

(a) Status
(b) Job enrichment
(c) Bonus
(d) Employee progress

5. Which of the following is not a feature of motivation?

(a) It is an integral feeling
(b) Reduces absenteeism
(c) Complex process
(d) Can be positive or negative

6. is an example of esteem needs:-

(a) Status
(b) Self-fulfillment
(c) Hunger
(d) Pension

Page 1
7. is the process of influencing the behavior of people making them
strive voluntarily towards achievement of goals
(a) Motivation
(b) Communication
(c) Leadership
(d) Directing

8. Informal communication is also called:-

(a) Wheel communication
(b) Grapevine
(c) Verbal
(d) Visual

9. It is very difficult to detect the source of such communication.

(a) Upward communication
(b) Vertical communication
(c) Lateral communication
(d) Informal communication

10. Which of the following is not a type of semantic barriers?

(a) Badly expressed message
(b) Unclarified assumptions
(c) Technical jargon
(d) Premature evaluation

11. Which of the following is not a type of psychological barriers?

(a) Premature evaluation
(b) Lack of attention
(c) Fear of challenge to authority
(d) Distrust

12. Which of the following is not a type of personal barrier?

(a) Fear of challenge to authority .
(b) Unwillingness to communicate
(c) Loss by transmission and poor retention
(d) Lack of proper incentive

13. It refers to the process of instructing, guiding, counselling, motivating

and leading j people in the organisation to achieve their objectives.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

14. Which of the following is not an element of directing?

(a) Supervision
(b) Communication
(c) Leadership
 (d) Inspection

15. While other functions prepare a setting for action, name the function
that initiates action in the organisation.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

16. Identify the level at which the directing function takes place in an organisation?
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) All of the above

17. It is defined as the process of guiding the efforts of employees and other
resources to accomplish the desired objectives.
(a) Supervision
(b) Communication
(c) Leadership
(d) Inspection

18. It means the process of making subordinates to act in a desired manner

to achieve certain organisational goals.
(a) Supervision
(b) Communication
(c) Leadership
(d) Motivation

19. Which of the following is not an assumption of Maslow’s theory?

(a) People’s behaviour is not based on their needs.
(b) Satisfaction of such needs influences their behaviour.
(c) A satisfied need can no longer motivate a person; only next higher level need
can motivate him.
(d) A person moves to the next higher level of the hierarchy only when the lower
need is satisfied.

20. Effective motivation in the organisation does not contribute towards

(a) Developing performance levels of employees
(b) Helping to reduce employee turnover
(c) Resistance to changes in the organisation
(d) All of the above

21. These needs are most basic in the hierarchy of motivation theory and
correspond to primary needs.
(a) Self Actualisation Needs
(b) Basic Physiological Needs
(c) Security Needs
 (d) Belonging Needs

22. Mohit recently got a raise in his salary due to annual increment. Which of his
human needs is being satisfied through this?
(a) Security Needs
(b) Belonging Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

23. Identify the style of leadership in which the superior uses file forces from
within the groups in order to establish control.
(a) Autocratic leadership
(b) Democratic leadership
(c) Laissez-faire leadership
(d) Authoritarian leadership

24. It refers to all measures which are used to motivate people to

improve performance,
(a) Leadership
(b) Motivation
(c) Incentives
(d) Communication

25. Which of the following is not an example of financial incentive?

(a) Perquisites
(b) Job Enrichment
(c) Profit Sharing
(d) Co-partnership

26. Which of the following is not an example of non-financial incentive?

(a) Career Advancement Opportunity
(b) Perquisites
(c) Status
(d) Organisational Climate

27. Ashutosh works as a manager in Kuber Ltd. Besides the salary, the company
offers him benefits such as free housing, medical aid and education to the children,
etc. Identify the type of incentive being offered to him.
(a) Perquisites
(b) Job Enrichment
(c) Co-partnership
(d) Pay and allowances

28. On joining Kartar Ltd. as Chief Financial Officer, Madhumita was allotted
500 shares of the company. Identify the type of incentive being described.
(a) Perquisites
(b) Retirement Benefits
(c) Co-partnership
 (d) Pay and allowances

29. Boom Limited gives due weightage to the perquisites and prestige of job so that the
designation helps to satisfy the psychological, social and esteem needs of an
individual. Identify the type of incentive being described in the above lines.
(a) Employee empowerment
(b) Job security
(c) Status
(d) Perquisites

30. On the occasion of the Founders Day of the firm, Veena was felicitated with
the certificate of best performer as a Business Development Manager. Identify
the type of incentive being described in the above lines.
(a) Career advancement opportunities
(b) Employee recognition program
(c) Organisational climate
(d) Job security

31. Which of the following is not a feature of leadership?

(a) It shows ability of an individual to influence others.
(b) It leads to achievement of organisational goals.
(c) Leadership is one-time process.
(d) It leads to desired change in the organisation.

32. It is the process of influencing the behaviour of people by making them

strive voluntarily towards achievement of organisational goals.
(a) Supervision
(b) Communication
(c) Leadership
(d) Motivation

33. As the general manager of an e-commerce company, Gagan maintains good

interpersonal relations with followers and also motivates them to contribute for y
‘ achieving organisational goals. Identify the concept being described in the above
lines.
(a) Supervision
(b) Communication
(c) Determination
(d) Leadership

34. It refers to the process of exchange of ideas, views, facts, feelings etc., between or
among people to create common understanding.
(a) Supervision
(b) Communication
(c) Motivation
(d) Leadership
35. Identify the correct sequence of steps involved in the communication process.
(a) Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
(b) Sender, Decoding, Receiver, Feedback, Message, Encoding, Media
(c) Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
(d) Sender, Media, Decoding, Receiver, Message, Encoding, Feedback

36. Formal communication may take place between

(a) Superior and subordinate
(b) Subordinate and superior
(c) Two managers at the same level
(d) All of the above

37. On the successful completion of two years in a company, Harsh received a letter
confirming his job as permanent employee. Identify the need of Harsh being
fulfilled as per Maslow’s Need Heirarchy Theory.
(a) Esteem Needs
(b) Security Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

38. Upward communications refer to flow of communication from

(a) Subordinate to superior
(b) One departmental manager to another
(c) Superior to subordinate
(d) All of the above

39. Downward communications refer to flow of communication from

(a) One departmental manager to another
(b) Superior to subordinate
(c) Subordinate to superior
(d) All of the above

40. Lateral communication takes place from

(a) First to second division of the same organisattion
(b) Superior to subordinate
(c) Subordinate to superior
(d) All of the above

41. Which of the following ways help in improving the communication effectiveness?
(a) Ensuring proper feedback
(b) Being a good listener
(c) Ensuring follow up patience
(d) All of the above

42. Which of the following is not a type of communication barriers?

(a) Semantic barriers
 (b) Psychological barriers
(c) Rational barriers
(d) Organisational barriers

43. Yamini received a special gold coin from her school management for exceptionally
good board result of her students in her subject. Identify the need of Yamini being
fulfilled as per Maslow’s Need Heirarchy Theory.
(a) Esteem Needs
(b) Belonging Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

44. As the incharge of a small scale factory manufacturing glassware, Raghu guides his
subordinates and clarifies their doubts in performing a task, so that they are able to
achieve the work targets given to them. Identify the function of management being
described in the above lines.
(a) Planning
(b) Staffing
(c) Directing
(d) Organising

45. Yajur, as a Project Manager, is able to assess the true potential of his subordinates and
constantly motivates them to realise their full potential. Identify the element of
directing being described in the above lines.
(a) Leadership
(b) Communication
(c) Supervision
(d) Motivation

46. Suman works as a Project Co-ordinator in an export house. Whenever the workload
is high, she is able to convince her team by explaining to them the purpose, providing
training and motivating them with additional rewards so as to be able to win their
wholehearted co-operation. Identify the element of directing being described in the
above lines.
(a) Supervision
(b) Motivation
(c) Leadership
(d) Communication

47. Radhika runs a confectionary in a local market. In order to make the workers in the
.Confectionary work optimally, she on one hand provides them overtime wages
and on the other hand imposes penalty, if required, by deducting the wages.
Identify the feature of motivation being described in the above lines.
(a) Motivation is an internal feeling.
(b) Motivation produces goal-directed behaviour.
(c) Motivation is a complex process.
(d) Motivation can be either positive or negative.
48. As an employee of an automobile company, Suraj has always been very lazy and
evasive. In order to change his behaviour, his boss decided to give him an incentive.
Identify the feature of motivation being described in the above lines.
(a) Motivation is an internal feeling.
(b) Motivation produces goal-directed behaviour.
(c) Motivation is a complex process.
(d) None of the above

49. Identify the correct sequence of steps involved in the motivation process.
(a) Tension, drives, search behaviour, unsatisfied need, satisfied behaviour,
reduction of tension
(b) Unsatisfied need, tension, drives, search behaviour, satisfied behaviour,
reduction of tension
(c) Drives, search behaviour, unsatisfied need, tension, satisfied behaviour, reduction
of tension
(d) Search behaviour, reduction of tension, unsatisfied need, tension, drives, satisfied
behaviour

50. Dheeraj Madan works as a Human Resource Manager in Busybee Limited. He gives
due care in designing jobs, so that it offers a meaningful work experience by
assuming a diversity of work content requiring higher level of knowledge. Identify the
type of incentive being adopted by the company.
(a) Employee recognition programme
(b) Organisational climate
(c) Career advancement opportunities
(d) Job enrichment

51. Esha was facing the problem of high labour turnover in her firm. On the advice of her
friend, she introduced special benefits for the employees, which helped her to retain
talented people in the organisation. Identify the related point of importance of
motivation.
(a) Motivation helps to improve performance levels of employees.
(b) Motivation helps to reduce employee turnover.
(c) Motivation helps to reduce absenteeism in the organisation.
(d) Motivation helps to mould the attitudes of employees.

52. Om Limited adopts a systematic performance appraisal system which provides

opportunity to employees to improve their skills and be promoted to the higher
level jobs. Identify the type of incentive being adopted by the company.
(a) Employee recognition programme
(b) Organisational climate
(c) Career advancement opportunities
(d) Job security

53. Jay and Lai work in a garment factory. Jay always earns a higher wage than Lai, as
he produces more units of output. Identify the type of financial incentive being
adopted by the company.
 (a) Perquisites
(b) Productivity linked wage incentives
(c) Co-partnership
(d) Pay and allowances

54. Ishan works as an Accounts Officer in Fabrications Limited. He also feels very
proud of the fact that he is the incharge of recreation committee in his office. Identify
the type of incentive being offered to Ishan.
(a) Career advancement opportunities
(b) Employee recognition program
(c) Organisational climate
(d) Employee participation

55. In order to motivate the workers in the factory to work overtime, Manoj decided to
provide additional wages to the workers. On knowing this, a worker in his factory,
Madhur, was very happy, whereas Raju was disappointed as he preferred to go
back home on time rather than working for overtime wages. Identify the feature of
motivation being described in the above lines.
(a) Motivation is an internal feeling.
(b) Motivation produces goal-directed behaviour.
(c) Motivation is a complex process.
(d) Motivation can be either positive or negative.

Q.No Answers

1 D

2 D

3 A

4 C

5 B

6 A

7 C

8 B

9 D
10 D

11 C

12 C

13 D

14 D

15 D

16 D

17 A

18 C

19 A

20 C

21 B

22 D

23 B

24 C

25 B

26 B

27 A

28 C

29 C

30 B

31 C

32 C

33 D
34 B

35 C

36 D

37 B

38 A

39 B

40 A

41 D

42 C

43 A

44 C

45 A

46 C

47 D

48 B

49 B

50 C

51 B

52 C

53 B

54 D

55 C
 Principles of management- Unit-V Controlling

Controlling

Page 1
16. Controlling function finds out how far deviates from standards.
(a) Actual performance
(b) Improvement
(c) Corrective actions
(d) Cost
17. Which of the following is not a limitation of controlling?
(a) Little control on external factors
(b) Costly affair
(c) Ensuring order & discipline
(d) Difficulty in setting quantitative standards
18. “Planning is theoretical whereas controlling is practical”
(a) True
(b) False
(c) Cannot say
19. Which of the following is not a process of controlling?
(a) Analyzing deviations
(b) Integrates employees efforts
(c) Taking corrective measures
(d) Setting performance standards
20. Which of the following is a traditional technique of managerial control?
(a) Personal observation
(b) Breakeven analysis
(c) Budgetary control
(d) All of the above
21. Write the full form of PERT :-
(a) Performance evaluation report technique
(b) Personnel enquiry retrieving technique
(c) Programme evaluation and review technique
22. Remedial actions taken to prevent deviation in future is called
(a) Measurement of actual performance
(b) Taking corrective actions
(c) Analyzing deviations
(d) Setting performance standards
23. Assembling of facilities and personnel for collecting, processing,
information that is required by managers is called
(a) PERT
(b) CPM
(c) Ratio analysis
(d) Management information Technique
24. Which of the following is not an importance of controlling function?
(a) It ensures order and discipline.
(b) It restricts co-ordination in action.
(c) It helps in judging accuracy of standards.
(d) It improves employee motivation.
25. Which of the following statements does not highlight the relationship between
planning and controlling?
(a) Planning and controlling are separable twins of management.
(b) Planning without controlling is meaningless, controlling without planning is
blind.
(c) Planning is prescriptive, controlling is evaluative.
(d) Planning and controlling are interrelated and interdependent.
26. Om Prakash has set up a small business unit for the manufacturing of detergent. In
order to market the detergent in the local residential areas, he has appointed a
team of ten salesmen. Each salesman is expected to sell at least 200 units of the
detergent within a week’s time. Identify the point of importance of controlling
being highlighted in the above case.
(a) Controlling helps in judging accuracy of standards.
(b) It ensures efficient use of resources.
(c) It helps in improving employee motivation.
(d) It facilitates co-ordination in action.
27. It is the process of ensuring that events confirm to plans.
(a) Planning
(b) Controlling
(c) Organising
(d) Directing
28. The controlling function is performed by
(a) Top level management
(b) Lower level management
(c) Middle level management
(d) All of the above
29. Controlling function brings the management cycle back to the
(a) Organising function
(b) Directing function
(c) Planning function
(d) None of the above
30. Deviations are said to be positive in nature when
(a) Planned performance is more than the actual performance
(b) Actual performance is more than the planned performance
(c) Both planned and actual performances are same
(d) None of the above
31. Which of the following statements is true with respect to controlling function?
(a) It is a forward looking function.
(b) Is a backward looking function.
(c) Both (a) and (b)
(d) None of the above
32. Identify the correct sequence of the steps involved in the controlling process.
(a) Measurement of actual performance, Taking corrective action, Setting
performance standards, Comparison of actual performance with standards,
Analysing deviations
(b) Comparison of actual performance with standards, Setting performance
standards. Measurement of actual performance, Analysing deviations, Taking
 corrective action
(c) Setting performance standards, Measurement of actual performance,
Comparison of actual performance with standards, Analysing deviations,
Taking corrective action
(d) Taking corrective action, Measurement of actual performance, Comparison
of actual performance with standards, Analysing deviations, Setting performance
standards
33. Which of the following is a technique used for measuring actual performance?
(a) Random sampling
(b) Personal observation
(c) Performance reports
(d) All of the above
34. The comparison of actual performance with the planned performance becomes
easier if the standards are set in
(a) Qualitative terms
(b) Quantitative terms
(c) Either of the above
(d) None of the above
35. This concept of Control Management is based on the belief that if you try to
control everything, you may end up controlling nothing.
(a) Critical point control
(b) Key result areas
(c) Management by exception
(d) Deviations
36. When the deviations between the actual performance and the planned
performance are within the limits
(a) A limited corrective action is required
(b) No corrective action is required
(c) A major corrective action is required
(d) None of the above
37. In an artificial plants manufacturing unit, the standard output set for a worker is
50 units per day. Dinesh produces 48 units in one day. In the given case, the value
of deviation is
(a) -2
(b) + 2
(c) 98
(d) None of the above
38. The need for the controlling function is felt in
(a) Business organisations
(b) Political organisations
(c) Social organisations
(d) All of the above
39. Controlling is known as a backward-looking function because
(a) It relates to future course of action.
(b) It is like a post-mortem of the past activities
(c) To find out deviation, it aims at improving future performance.
(d) All of the above
40. Reducing the workers, absenteeism in a factory by 20% is an example of
(a) Quantitative standard
(b) Qualitative standard
(c) Deviation
(d) None of the above
41. Yash runs a logistic company. The Tour Incharges of each trip in the company
are expected to submit a report to the Event Manager on the completion of every
trip. Identify the step in the controlling process being described in the above lines.
(a) Setting of standards
(b) Measurement of actual performance
(c) Taking corrective action
(d) Analysing the deviations
42. In a marketing firm, the Financial Manager pays more attention towards an
increase of 3% in the marketing cost as compared to a 15% increase in the
courier expenses. Identify the concept being used by the manager.
(a) Management by exception
(b) Critical point control
(c) Corrective action
(d) None of the above